Fannie Mae is back and they want 400 billion….
UPDATE: WSJ provides an interactive map of ‘strategic defaults’ here
A-HA!!!! I FRAKKING KNEW IT!!! $%^y&*u(*(&^%&$&^!!!!! Frakkiing Fannie and Freddie will NOT MODIFY frakking loans but they want BILLIONS MORE!!! ARRRRRGLEEE!!!!! Our previous rants on this here. People are not talking about this much and this is THE NUMBER ONE OBAMA FAILURE – HOUSING.
As we have said over and over and over – DO THE DAMN HOLC ALREADY!! We are bailing out the losses on the short sales and these homes are being bought by investors who are making another damned housing bubble!!! (and the big bank servicers get a hefty fee) Just write down principal for the 4 states sooo far underwater and keep the homeowners in, this way we take the loss ONCE and have saved a family. Jeebus it is not that hard.
If anyone doubts the cycle of DOOM this lack of action is creating, see WSJ front page again today a piece about peeps here in AZ walking away – ‘strategic default’. It is getting less and less ‘stigmatic’ lol, to walk away. It is a cycle of DOOM that will drag the economy back down to its damn knees if they do not take MEANINGFUL action. And this move by FAN FRED to get HUNDREDS OF BILLIONS MORE IN TAXPAYERS BAILOUTS PROVES MY DAMN POINT.
Anyone who thinks folks cannot just walk away, you are wrong. In non recourse states like AZ CA you CAN walk away, jingle mail. They cannot come after you for the loss AND the Congress passed the 2007 Mortgage Debt Relief Act so no folks the IRS is NOT sending 1099s to these people. Stop the freefall or it will spread across the country, AZ, CA FL, NV represent 21% of our national GDP folks.
I am doing all I can to stay and the damned FAN and servicer will not make any offer, we have lost income and are underwater, it is like they WANT us to walk away, they likely do, the investors have hyped prices back up to 2004 levels here, it is another bubble happening before our eyes and no one will stop it.
…Fannie Mae recently warned, for example, that it could not pay the dividends it owes the Treasury, so “future dividend payments will be effectively funded with equity drawn from the Treasury.”
All the companies have recently drawn new government money or are in talks to do so:
Fannie Mae and Freddie Mac, which buy and resell mortgages, have used $112 billion — including $15 billion for Fannie in November — of a total $400 billion pledge from the Treasury.
Now, according to people close to the talks, officials are discussing the possibility of increasing that commitment, possibly to $400 billion for each company, by year-end, after which the Treasury would need Congressional approval to extend it. Company and government officials declined to comment….
Reminder, Fannie Mae % of loans ‘seriously delinquent per total number of loans since 1998: